This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

NYSE Is Winning the IPO Listing War

NEW YORK (TheStreet -- There was some discussion earlier this week that Facebook (FB) could look to bolt from the Nasdaq OMX (NDAQ) exchange in the aftermath of its messy public debut last Friday.

The social networking giant was said to be talking to NYSE Euronext (NYX) about a jump to the Big Board, a move that would be highly unusual as it would mean breaking a contract that typically ends at the close of the year. Most transfers take place in December.

The fact that the reports even surfaced though brings back up the debate about which exchange is tops these days.

Both the NYSE and Nasdaq courted Facebook heavily. Facebook chose Nasdaq for a variety of excellent reasons, among them: A reputation for advanced technology and its formidable flashing presence in Times Square -- the heart of commercial New York -- a clear message when a company wants to reach out in a big way to the retail masses.

Nasdaq promoted its technology throughout the process of courtship, its marketers touting the fact the exchange had invented electronic trading 40 years ago and ithat ts computer hub could transmit (theoretically) more than 1 million messages per second at sub-100 microsecond average speeds.

The NYSE, on the other hand, was depicted as an outdated system with its fundamental trade operations linked to fallible humans.

But that ancient system, its roots go back to 1792, has been proven to have some stamina, even in its computer support systems.

"NYSE's technology offering and focus is quite different from Nasdaq's," which is primarily an exchange solution business," said analyst Jillian Miller of BMO Capital. "The NYX's offering is targeted at connectivity for buy and sell side institutions rather than providing an 'exchange in a box' for small exchange groups."

It is this difference that would have helped in the large and complicated Facebook offering.

While NYSE has a solid computing foundation, it still relies on humans within the network to make key decisions.

"It's exactly this human connection that ensures the strength of the NYSE," said Ken Polcari of ICAP Equities, an NYSE member firm. "We create orderly openings and closes, we have lower volatility, we have deeper/more liquid markets that in the end improve prices for all investors. We do not hide in a dark pool, we are in fact the most transparent, visible marketplace in the world."

Humans count, even in the most high-tech of IPOs. In the case of Facebook, Nasdaq unforgivably failed to keep the public apprised of its trading delays. Over at the NYSE, in the case of an IPO, if trading isn't being executed well, then one human walks over to another human on the floor of the exchange and begins to yell. That usually gets the message across.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs